C'mon Keith.  If you can have economists praising the utility of crime then
why not doctors praising the utility of disease? 

 

REH

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Keith Hudson
Sent: Wednesday, August 08, 2012 7:21 AM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION
Subject: Re: [Futurework] They make more money when you are sick therefore
there incentive is to..........?

 

There's nothing wrong in principle with a for-profit medical system. What's
wrong is that the medical profession has been granted special privileges by
government enabling it to throw a self-maintained protective barrier around
itself in order to artificially restrict its members' numbers and maintain
their incomes.

Keith 

At 05:35 08/08/2012, REH wrote:




The for profit private sector is to the economics of public health as
leeches were to healthcare 200 years ago.    If anyone gets better it's a
"fluke." 
 
REH
 
August 6, 2012 NYTimes


Hospital Chain Inquiry Cited Unnecessary Cardiac Work







By REED ABELSON
<http://topics.nytimes.com/top/reference/timestopics/people/a/reed_abelson/i
ndex.html>  and JULIE CRESWELL
<http://topics.nytimes.com/top/reference/timestopics/people/c/julie_creswell
/index.html> 




In the summer of 2010, a troubling letter reached the chief ethics officer
of the hospital giant HCA, written by a former nurse at one of the company's
hospitals in Florida.

In a follow-up interview, the nurse said a doctor at the Lawnwood Regional
Medical Center, in the small coastal city of Fort Pierce, had been
performing heart procedures on patients who did not need them, putting their
lives at risk.

"It bothered me," the nurse, C. T. Tomlinson, said in a telephone interview.
"I'm a registered nurse. I care about my patients."

In less than two months, an internal investigation by HCA concluded the
nurse was right.

"The allegations related to unnecessary procedures being performed in the
cath lab are substantiated," according to a confidential memo written by a
company ethics officer, Stephen Johnson, and reviewed by The New York Times.

Mr. Tomlinson's contract was not renewed, a move that Mr. Johnson said in
the memo was in retaliation for his complaints.

But the nurse's complaint was far from the only evidence that unnecessary -
even dangerous - procedures were taking place at some HCA hospitals, driving
up costs and increasing profits.

HCA, the largest for-profit hospital chain in the United States with 163
facilities, had uncovered evidence as far back as 2002 and as recently as
late 2010 showing that some cardiologists at several of its hospitals in
Florida were unable to justify many of the procedures they were performing.
Those hospitals included the Cedars Medical Center in Miami, which the
company no longer owns, and the Regional Medical Center Bayonet Point. In
some cases, the doctors made misleading statements in medical records that
made it appear the procedures were necessary, according to internal reports.

Questions about the necessity of medical procedures - especially in the
realm of cardiology - are not uncommon. None of the internal documents
reviewed calculate just how many such procedures there were or how many
patients might have died or been injured as a result. But the documents
suggest that the problems at HCA went beyond a rogue doctor or two.

At Lawnwood, where an invasive diagnostic test known as a cardiac
catheterization is performed, about half the procedures, or 1,200, were
determined to have been done on patients without significant heart disease,
according to a confidential 2010 review. HCA countered recently with a
different analysis, saying the percentage of patients without disease was
much lower and in keeping with national averages.

At Bayonet Point, a 44-year-old man who arrived at the emergency room
complaining of chest pain suffered a punctured blood vessel and a near-fatal
irregular heartbeat after a doctor performed a procedure that an outside
expert later suggested might have been unnecessary, documents show. The man
had to be revived. "They shocked him twice and got him back," according to
the testimony of Dr. Aaron Kugelmass in a medical hearing on the case.

In another incident, an outside expert described how a woman with no
significant heart disease went into cardiac arrest after a vessel was cut
when a Bayonet Point cardiologist inserted a stent, a meshlike device that
opens coronary arteries. She remained hospitalized for several days,
according to a person who has reviewed internal reports.

On Monday morning, in a conference call with investors, company executives
disclosed that in July the civil division of the United States attorney's
office in Miami requested information on reviews assessing the medical
necessity of interventional cardiology services provided at 10 of its
hospitals, located largely in Florida, but also two or three hospitals in
other states. In the conference call and in a statement on its Web site,
<http://hcahealthcare.com/util/documents/Information_Regarding_NYT_Story_080
612.pdf>  the company also referred to inquiries by The Times. HCA's stock
ended nearly 4 percent lower Monday, at $25.55.

In a recent statement, HCA declined to provide evidence that it had alerted
Medicare
<http://topics.nytimes.com/top/news/health/diseasesconditionsandhealthtopics
/medicare/index.html?inline=nyt-classifier> , state Medicaid
<http://topics.nytimes.com/top/news/health/diseasesconditionsandhealthtopics
/medicaid/index.html?inline=nyt-classifier>  or private insurers of its
findings, or reimbursed them for any of the procedures that the company
later deemed unnecessary, as required by law.

"When the company becomes aware of a situation in which we might have a
reimbursement obligation, we assess, with outside resources, what our
reimbursement obligations might be," the statement said.

HCA also declined to show that it had ever notified patients, who might have
been entitled to compensation from the hospital for any harm.

Some doctors accused in the reviews of performing unnecessary procedures are
still practicing at HCA hospitals.

The cardiologists say the reviews of their work did not accurately reflect
the care they provided, and HCA says the reviews "are not, by any means,
definitive," according to an e-mailed response by the company. HCA says it
took whatever steps were necessary to improve patient care. It also said
"significant actions were taken to investigate areas of concern, to bring in
independent reviewers, and to take action where necessary."

Details about the procedures and the company's knowledge of them are
contained in thousands of pages of confidential memos, e-mail correspondence
among executives, transcripts from hearings and reports from outside
consultants examined by The Times, as well as interviews with doctors and
others. A review of those communications reveals that rather than asking
whether patients had been harmed or whether regulators needed to be
contacted, hospital officials asked for information on how the physicians'
activities affected the hospitals' bottom line.

HCA denies its decisions at these hospitals were motivated by financial
considerations, but rather "demonstrate the strong focus we have on quality
patient care." The company also says that more than 80 percent of its
hospitals are in the top 10 percent of government rankings for quality.

Although HCA has hospitals in about 20 states from California to Virginia
and Alaska to Texas, Florida, with its large older population, is a critical
and growing market for hospital chains and especially for HCA. HCA's Florida
hospitals provide about 20 percent of the company's revenue.

The need to root out Medicare fraud - billing for unnecessary procedures,
for example - is high for all hospitals. In 2003, Tenet Healthcare agreed to
pay $54 million
<http://www.nytimes.com/2003/08/07/business/tenet-healthcare-paying-54-milli
on-in-fraud-settlement.html>  to settle allegations that unnecessary cardiac
procedures were being performed over six years and billed to Medicare and
Medicaid at one of its hospitals in California, Redding Medical Center.

But the pressure is even greater for HCA. In 2000, the company reached one
of a series of settlements involving a huge Medicare fraud case with the
Justice Department that would eventually come to $1.7 billion in fines and
repayments. The accusations, which primarily involved overbilling, occurred
when Rick Scott, now the governor of Florida, was the company's chief
executive. He was removed from the post by the board but was never
personally accused of wrongdoing.

As part of the settlement with the federal regulators, HCA signed a 97-page
Corporate Integrity Agreement
<http://www.oig.hhs.gov/fraud/cia/agreements/the_hc_co_121400.pdf>  that
extended through late 2008. It detailed what had to be reported to
authorities and provided for stiffer penalties if HCA failed to do so.

If there were intentional violations of such an agreement, it would mean
"that a defendant, already caught once defrauding the government, has
apparently not changed its corporate culture," said Michael Hirst, a former
assistant United States attorney in California who oversaw the case against
Tenet. Mr. Hirst now represents whistle-blowers.

In its statement, HCA said it fulfilled any obligation it had under the
agreement to report "substantial overpayment." The revelations in the
documents come at a significant time in the evolution of medical treatment
in the United States - from independently owned hospitals to large,
corporate chains.

HCA exemplifies the trend. In 2006, HCA was taken private by a group of
private equity
<http://topics.nytimes.com/top/reference/timestopics/subjects/p/private_equi
ty/index.html?inline=nyt-classifier>  firms, including Bain Capital, the
firm co-founded by Mitt Romney, the presumptive Republican presidential
nominee. (By that time, Mr. Romney was no longer a partner in Bain.) By
mid-2010, the private equity owners were eager to start cashing out of their
investment. While HCA prepared for an initial public offering of its stock
that took place in 2011, it borrowed to pay the private equity firms $4.3
billion in dividends.

The ability to take these financial steps hinged on HCA showing continued
robust profit growth at its hospitals.

And for that the company turned, in part, to cardiac care.

An Early Sign of Trouble

Two years after the 2000 fraud settlement, company executives uncovered
problems in the cardiac catheterization lab at Cedars Medical Center,
according to accounts that became public.

An outside consulting group hired by HCA provided a report that raised
"questions regarding the medical necessity of some of the procedures," the
company said in a news release in early 2003. HCA said it was suspending
eight physicians from doing certain cardiac procedures, was providing the
report to a United States attorney and would refund any inappropriately
submitted hospital claims.

"This issue at Cedars and the steps taken to investigate and resolve it
should be seen and understood in the larger context of HCA's commitment to
quality care and patient safety," Jack O. Bovender Jr., who was then the
company's chief executive, told investors in a conference call that
February.

HCA will not say whether it had ever refunded payments for the unnecessary
procedures. Medicare officials said they could not determine whether the
agency had received payments, and the United States attorney's office in
Miami declined to comment. The hospital allowed four of the physicians to
return under monitoring, according to HCA, and two did so. "We believe the
hospital acted appropriately," the company said in its recent statement.
Still, the negative publicity swirling around Cedars worried HCA executives,
according to internal e-mails. They wanted to avoid a replay when similar
problems were discovered at another HCA hospital - Bayonet Point.

An Outbreak of Stents
<http://topics.nytimes.com/top/news/health/diseasesconditionsandhealthtopics
/stents/index.html?inline=nyt-classifier> 

Nestled along the west coast of Florida, about 45 miles northwest of Tampa,
the town of Hudson, with its winding canals, is largely a quiet fishing
community.

Soon after the Cedars episode, HCA executives noticed that the hospital in
Hudson, the 290-bed Regional Medical Center Bayonet Point, was implanting an
unusually high number of cardiac stents, given the size of the population.

Late in 2003, executives from HCA's headquarters in Nashville dispatched a
group that oversees its hospitals' cardiac care to investigate. In a
confidential memo, the team cited incidents at Bayonet Point where patients
were treated for multiple lesions, or blockages, even when "the second
lesion (or third) did not appear to have significant disease." The team went
on to note "several cases" in which patients were treated even though their
arteries did not have significant blockages.

In a transcript of confidential hearings held later, the lawyers for HCA
were blunt. In looking at one physician, Dr. Sudhir Agarwal, Dr. Martin I.
Kalish, a physician who served as an outside lawyer for HCA, said the "style
of clinical practice leads to unnecessary procedures and unnecessary
complications."

On the team's recommendation, HCA brought in an external company, CardioQual
Associates of Franklin, Mich., in 2004 to examine medical records from
Bayonet Point.

In a confidential memo prepared in December 2004 and reviewed by The Times,
CardioQual concluded that as many as 43 percent of 355 angioplasty cases,
where doctors performed invasive procedures to open up a patient's arteries,
were outside reasonable and expected medical practice.

Worse, the investigation revealed that some physicians had indicated in
medical records that the patients had blockages of 80 to 90 percent when a
later, more scientific analysis of a sampling of cases revealed the
blockages had ranged from 33 to 53 percent.

Cardiologists generally do not operate on any blockage less than 70 percent,
said Dr. Rita Redberg, a prominent cardiologist at the University of
California, San Francisco. The significant disparities between the magnitude
of blockage being cited by the doctors at Bayonet Point and the CardioQual
review "raises real concerns that this wasn't just error, but it was intent"
by the doctors, she said.

After receiving the CardioQual report, Bayonet Point suspended the
privileges of nine physicians in late 2004. But unlike the Cedars episode,
when HCA turned over its findings to regulators and authorities, HCA took
steps to withhold details of its conclusions to the media and others,
according to internal communications. In January 2005, David Williams, who
was then the chief executive of Bayonet Point, wrote in an e-mail: "Clearly,
we have protected ourselves under the peer review umbrella and have released
very little information." The recipients of his message included Dan Miller,
who then oversaw HCA's hospitals in western Florida, and Charles R. Evans, a
Nashville executive who was president of all of HCA's hospitals on the
eastern side of the country.

In his response, Mr. Evans thanked Mr. Williams for the update and asked for
a "summary as to the business impact."

In a later internal communication, a representative for HCA said the company
had successfully used confidentiality rules to withhold the damaging
CardioQual report from the Florida attorney general, whose Medicaid Fraud
Control Unit had started an investigation of the physicians. In response to
questions from The Times, however, HCA said it had provided "substantially
all of the information in the report" to state regulators. The attorney
general's office did not return calls seeking comment.

One of the subjects of that investigation was Dr. Agarwal. The CardioQual
review of 20 of his cases concluded that fewer than half were within
reasonable and expected practice. Dr. Agarwal did not return a call to his
office.

Anthony Leon, a lawyer for Dr. Agarwal and the other eight Bayonet Point
physicians, said in a statement: "There is absolutely no merit to any
allegation that any of these doctors were performing unnecessary procedures
or performing procedures that led to unnecessary complications as a style or
pattern of practice." The suspensions of Dr. Agarwal and another physician
were found to have been done in error by an outside panel in hearings in
2005 and 2006, Mr. Leon added. A doctor on the panel said Dr. Agarwal's
procedures were found to be within established medical practice, and his
full privileges were reinstated in early 2006.

Dr. Agarwal and the other eight physicians have filed defamation lawsuits in
county court, claiming the actions and statements of the hospital and HCA
ruined their practices. HCA has denied the claims.

HCA would soon discover its problems didn't end at Bayonet Point.

A Nurse Speaks Out

C. T. Tomlinson said he could not believe his eyes as Dr. Abdul Shadani
prepared to insert a stent in a heart patient in the cardiac catheterization
lab of HCA's Lawnwood hospital in the late spring of 2008.

Mr. Tomlinson, a traveling nurse who had worked at more than a dozen cath
labs before arriving at Lawnwood, said in a telephone interview that he saw
no blockages in the images of the patient's artery.

"Sir, what are we going to fix?" Mr. Tomlinson recalled asking Dr. Shadani.
The doctor responded by asking the nurse if he did not see the 90 percent
blockage in the artery. Mr. Tomlinson did not, and looked at the others in
the room. They all shrugged, he said, and Dr. Shadani inserted the stent.

Mr. Tomlinson reported his concerns to hospital officials. Shortly after, he
was told his contract would not be renewed. An internal memo, however,
concluded that Mr. Tomlinson had been retaliated against. Even so, that
summer the hospital opened an investigation. Internal communications show
that HCA officials in charge of quality were involved in the decision to
review a sample of cases from some cardiologists at the hospital.

The reviewer, an outside heart specialist, concluded there were problems
with 13 of the 17 cases performed by Dr. Shadani, including unwarranted
cardiac catheterizations and patients who were needlessly subjected to
multiple procedures.

While it is not clear whether HCA accepted the reviewer's findings, Dr.
Shadani continues to practice at Lawnwood, according to the Web site. Dr.
Shadani did not return several telephone calls seeking comment.

The outside reviewer found similar problems with several other cardiologists
at Lawnwood. The company declined to say whether it alerted regulators or
patients of its findings but it said it established stricter rules governing
how cardiologists should document their cases.

A Moneymaking Practice

Cardiology is a lucrative business for HCA, and the profits from testing and
performing heart surgeries played a critical role in the company's bottom
line in recent years.

Some of HCA's busiest Florida hospitals perform thousands of stent
procedures each year. Medicare reimburses hospitals about $10,000 for a
cardiac stent and about $3,000 for a diagnostic catheterization.

But in recent years, doctors across the country have been less quick to
implant stents, instead relying on drugs to treat blockages. Medicare has
also questioned the need for patients who receive cardiac stents to stay
overnight at the hospital, cutting into the profitability of the procedures
at many hospitals.

HCA has more than 100 catheterization labs across the country and the one at
Lawnwood was a financial juggernaut. It accounted for 35 percent of the
hospital's net profits, according to financial documents.

In fact, one of the physicians from Lawnwood's cardiac cath lab, Dr. Prasad
Chalasani, was highlighted by the hospital in a 2009 business plan as being
the most profitable doctor at the facility. "Our leading EBDITA MD," the
plan described him. (Ebitda, or earnings before interest, taxes,
depreciation and amortization, is a measure of corporate earnings.) Just a
few months earlier, hospital executives had received an outside review that
characterized Dr. Chalasani as too quick to perform catheterizations, often
without first doing the stress tests necessary to determine whether a
patient needed the invasive and costly test.

When reached by telephone, Dr. Chalasani defended his work, saying the 2008
findings were the result of poor documentation about what had occurred
before the patients received the catheterizations. "The tests were done," he
said.

Dr. Chalasani emphasized that he was not paid by the hospital, and had
privileges at other hospitals. Since 2008, he said, doctors have improved
their documentation. Among the changes, he said, is the use of forms
requiring the doctors to indicate that they are following established
guidelines.

"To my knowledge, we have made tremendous progress," he said.

The questions raised by the 2008 incident might have ended there if not for
Mr. Tomlinson's 2010 letter to Alan R. Yuspeh, the head of HCA's ethics and
compliance. HCA undertook another review of Lawnwood and some of its other
hospitals in Florida, including Kendall Regional Medical Center, in Miami,
and Palms West Hospital, near West Palm Beach. The results showed that some
patients without heart disease were receiving questionable treatment, and
HCA has responded by conducting still more reviews.
 
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Keith Hudson, Saltford, England http://allisstatus.wordpress.com
<http://allisstatus.wordpress.com/> 
  

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